9911796707
TMI Blog2023 (1) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the action of the Assessing Officer in determining the status of the assessee as Association of Person (AOP) as against Artificial Juridical Person (AJP). 3. Briefly stated the facts that the assessee is a Society registered under the Societies Registration Act, 1860 filed its return of income on 20.07.2013 for the assessment year under consideration declaring total income of Rs. 37,080/-. The return was processed under section 143(1) of the Act and subsequently the assessment was completed under section 143(3) of the Act on 29.01.2016 determining the income of the assessee at Rs. 1,39,280/-. While completing the assessment the Assessing Officer determined the status of the assessee as AOP and the interest income was taxed at maximum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OP then also it cannot be taxed at maximum marginal rate. In support of he drew our attention to the copy of registered certificate issued by the Registrar of Societies placed at page 1 of the paper book. Thus, she submitted that the assessee should not be taxed as maximum marginal rate. 6. On the other hand Id. DR submitted that none of the authorities have examined this issue and therefore the matter should be set aside to the file of the Assessing Officer. After considering the rival submissions and also perusing the material placed on record we find that the assessee an Air Force, Navy Farm owner's welfare association has been registered under the Societies Registered Act 1860. Vide certificate dated 23.10.2000 this fact has been ackn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 143(3) of the Act the status of the assessee was determined as AOP instead of AJP. Assessee also contended that the provisions of Section 167B are not applicable to a registered society. The ld. CIT(Appeals) by order dated 29.10.2018 held that the provisions of section 167B of the Act are applicable to the society and the income of the assessee is liable to be taxed at maximum marginal rate. 5. The ld. Counsel for the assessee before me contends that the assessee is a society registered under the Societies Registration Act, 1860 applied for PAN as an Artificial Juridical Person (AJP) and the PAN was allotted to the assessee as AJP. The assessee was all along filing returns in the status of AJP and attention was invited to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer to examine the applicability of provisions of Section 167B of the Act and there is no direction to examine the status of the assessee i.e. whether assessee is an AOP or AJP. The Ld. DR strongly placed reliance on the orders of the ld. CIT(Appeals) in sustaining the action of the Assessing Officer in treating the assessee as AOP and also applying the provisions of Section 167B of the Act and bringing the interest income to tax at maximum marginal rate. 8. Heard rival submissions, perused the orders of the authorities below and the materials placed before me. 9. On reading of the directions of the Tribunal, it is very much clear that the Tribunal for limited purpose of examining the applicability of provisions of Section 167B the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an assessee registered under Societies Act, the same is excluded for taxing the income at for maximum marginal rate. For ready reference we extract relevant part of Section 167B(1) of the Act which reads as under: 167B. (1) Where the individual shares of the members of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of1860) or under any law corresponding to that Act in force in any part of India) in the whole or any part of the income of such association or body are indeterminate or unknown, tax shall be charged on the total income of the association or body at the maximum marginal rate : Plain reading of section 167 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act, 1860 as evidenced from the registration certificate. The facts are similar in this case, therefore, following the decision of coordinate bench and section 167B of the Act, we hold that the income of the assessee is to be taxed at normal rates but not at maximum marginal rate, accordingly, we set aside the order of the Ld. CIT(A) and allow the appeal of the assessee on this ground. 6. During the appeal hearing, the Ld. DR did not bring any other decision of the higher court to controvert the case laws relied upon by the Ld.AR. Since, the facts are identical, respectfully following the rule of consistency and the view taken by this Tribunal in the case cited supra, we hold that the income of the assessee is to be taxed at normal rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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